Why should the bond holders get more than they bargained for at the expense of Shareholders.

Mayo...That's what I have a hard time with. These are unsecured notes...Do the note holders actually have the right to take control of the company? And who speaks for the note holders? Your right, the arb case is a very large asset and the only real asset of the company. It would seem that a court of law would have to take the potential award into consideration.

If you use the analogy of a home owner getting foreclosed on, and the bank sells the property at a foreclosure sale, the owner would receive any equity above what was owed on the property. The bank can not profit at the expense of the home owner. Seems the fair way to conduct business.